Seaman agrees with the common notion that using a major credit card is a good idea to get a better exchange rate. But urging travelers to check the fine print in credit card agreements, he warns, "many credit cards now charge a 'foreign transaction fee' on every single one of these purchases, which usually is around 3% to 4%. Although this isn't bad for a cup of coffee, if you spend $200 or $300 in a weekend, that added fee begins to pile up rapidly."

Another card not charging foreign transaction fees is the Discover card, also noted by Seaman. He suggests taking along a reasonable amount of currency, which can be converted into local currency, just in case there is a problem with a card – an issue that can happen to anyone.

Travel agents commonly advise calling the card company to let them know our plans any time travel takes us out of our normal spending area to avoid a red flagged transaction for secure card companies.


[Flickr photo by Images_of_Money]